Mortgage to remove credit card debt? I'm panicking.

BlackHole_2

Hi.
I'll fill you in on the story...

Good news:
Myself and my sister own a home (that I live in).
It's worth 240-250k
It is mortgage free.

Bad news:
I've got credit card debts of £31500 spread over 5 cards.

As well as wiping out all my debts, I hoped to do some home improvements, new kitchen, that sort of thing, and applied to my bank (Northern Bank) for a mortgage of £60k
For purposes of mortgage applications, my sister needed to be on the application although I intend to pay 100% of the mortgage myself.
I'm in a steady government job earning approx £30k per year, and my sister earns a similar amount.
Today, the bank phoned to say that after talking to their credit reference department, they can't help me.
That made me panic a little, as although up to now i've missed zero payments on anything, I'm starting to struggle keeping my head above water just paying the minimum payments.

In an effort to keep something moving, I phoned the halifax this even to apply for a mortgage (base rate tracker) for the same amount.
They said they should be able to give me a decision in principle, but after being on hold for a bit, they came back to say I've been referred to the underwriter, but that was probably due to the debt consolidisation being applied for.
I should get a decision by wednesday.

What are my options folks? Are there and mortgage lenders sympathetic to my position?
I'd prefer one payment and then cut up my cards. I realise it's usually frowned upon to secure credit card debt against a house but I feel its the only route. PS - Im in Northern Ireland if it makes a difference. I realise I'm a new poster here, but I'd appreciate all advice, on how to get out of this prediciment. It's really really stressing me out and I feel quite panicy about it. Sleeping at night is difficult.
Thank you all.

olly300

Personally rather then going to banks/building societies direct and having lots of credit searches on your file I would go and see a broker.

Plus most people on this site would advise you not to put any home improvements on a debt particularly if half the property is owned by your sister.

I suggest you also put your post on the Debt Free Wannabe board as they may be able to offer you cheaper and better suggestions on what you can do to get rid of your debt.

Angel-Delight1984

My partner is in a similar position the same happened to him when he applied for a re-mortgage. The advisor told him banks frown upon debt consolidation when applying for a mortgage so it was best to insinuate the bulk of the loan was for home improvements. I posted a thread on here a couple of days ago and got some really good advice. I'll pass it on to you hope it helps.
Don't keep applying to several lenders as it could damage your credit file.
Both you and your sister need to get a copy of your credit files download a copy from experian website as there may be something on there which is stopping you passing credit checks. Next go to a whole of Market broker who can take a look at your credit file and find you a lender likely to offer you a mortgage to match your situation. Try and find a broker who doesn't charge any fees. If you can get a recommendation from a friend or family member it may help but if you don't google it there are many out there.

Hope this helps
Good luck x

_Andy_

Angel-Delight1984 wrote: »

The advisor told him banks frown upon debt consolidation when applying for a mortgage so it was best to insinuate the bulk of the loan was for home improvements.

The advisor is advocating fraud. Not a good idea.

dfitps

If you're mortgage-free and earning then even though those debts are high can't they be got down gradually by throwing money at them each month? I'd try the debt-free wannabee board as they have good ideas on that sort of thing. I wouldn't have the willpower to cut up the cards personally, at least I'd try the ideas from the dfw board first to work on a budget allowing for debt repayment, so that then then switching the debt repayment method from individual cards to the mortgage I wouldn't end up spending on the cards again!

Angel-Delight1984

Didn't mean to advocate fraud it's just the advice given to us from the advisor at the bank. I didn't think they could give out advice that's fraudulent.

maninthestreet

Rather than borrowing even more money, use your disposable income to reduce your credit card debt. Do you have any assets you can sell (other than the house) to raise cash to out towards your credit card debt?

olly300

dfitps wrote: »

If you're mortgage-free and earning then even though those debts are high can't they be got down gradually by throwing money at them each month? I'd try the debt-free wannabee board as they have good ideas on that sort of thing. I wouldn't have the willpower to cut up the cards personally, at least I'd try the ideas from the dfw board first to work on a budget allowing for debt repayment, so that then then switching the debt repayment method from individual cards to the mortgage I wouldn't end up spending on the cards again!

I think the OP is panicking about the amount owned.

I do hope s/he does go to the debt free wannabe board, like both you and I suggested, as they offer advice and support of in getting out of debt and not getting into the problem in future.

CLAPTON

BlackHole wrote: »

Hi.
I'll fill you in on the story...

Good news:
Myself and my sister own a home (that I live in).
It's worth 240-250k
It is mortgage free.

Bad news:
I've got credit card debts of £31500 spread over 5 cards.

As well as wiping out all my debts, I hoped to do some home improvements, new kitchen, that sort of thing, and applied to my bank (Northern Bank) for a mortgage of £60k
For purposes of mortgage applications, my sister needed to be on the application although I intend to pay 100% of the mortgage myself.
I'm in a steady government job earning approx £30k per year, and my sister earns a similar amount.
Today, the bank phoned to say that after talking to their credit reference department, they can't help me.
That made me panic a little, as although up to now i've missed zero payments on anything, I'm starting to struggle keeping my head above water just paying the minimum payments.

In an effort to keep something moving, I phoned the halifax this even to apply for a mortgage (base rate tracker) for the same amount.
They said they should be able to give me a decision in principle, but after being on hold for a bit, they came back to say I've been referred to the underwriter, but that was probably due to the debt consolidisation being applied for.
I should get a decision by wednesday.

What are my options folks? Are there and mortgage lenders sympathetic to my position?
I'd prefer one payment and then cut up my cards. I realise it's usually frowned upon to secure credit card debt against a house but I feel its the only route. PS - Im in Northern Ireland if it makes a difference. I realise I'm a new poster here, but I'd appreciate all advice, on how to get out of this prediciment. It's really really stressing me out and I feel quite panicy about it. Sleeping at night is difficult.
Thank you all.

you say you are struggling to pay the minimum amounts on the CC.. how much are they?
what would the payments be on a 60K mortgage ?
It seems strange to be struggling to pay your exisitng debts but looking to spend even more money